How to Establish Credit For A New Business

If you formed an LLC or a corporation recently you  may want to establish credit for the business. 

A business with an established credit history  can get credit cards, lines of credit with a bank,  real estate loans, auto loans, and unsecured loans for business 

purposes. 

Ben Moskel

Some of these financial products require a personal guarantee. However, if the corporation has sufficient assets and credit history, your corporate entity  may be able to stand on it's own and qualify for certain types of loans  without a personal guarantee. 

Unfortunately credit history is not established simply with the passage of time. Even businesses with a long track record of sales and revenue may have very little  to no credit history. It is a proactive practice requiring frequent use of  credit. 

Entire seminars are given on establishing corporate credit. However, a good place to start, especially for  new corporate entities, is with small retail lines of  credit. 

Ben Moskel

These typically don't require a personal credit check and can be used for business supplies. 

Consider opening an account with Quill (quill.com) and Uline (uline.com) and use is each month to purchase necessary supplies for your business. 

Use your corporate account (net 30 invoice.)  This will help establish corporate credit and help your business qualify for more advanced credit products.